The small business income tax offset (also known as the unincorporated small business tax discount) can reduce the tax you pay by up to $1,000 each year.

The offset is worked out on the proportion of tax payable on your business income.

To be eligible for the offset, you must be carrying on a small business as a sole trader, or have a share of net small business income from a partnership or trust.

The small business must have an aggregated turnover of less than $5 million for the 2016–17 income year onwards.